MuscleNerd has confirmed earlier today that Saurik, developer of Cydia and Chpwn, iPhone developer and hacker are working hard to get Cydia ready in time for iOS 4.2 and subsequent release of jailbreaking tools. He tweeted:

Both @chpwn and @saurik have been burning the midnight oil prepping for updated version of Cydia

It looks like Cydia will get a new Settings pane based on the screenshot published by MuscleNerd. According to chpwn that is the only UI change and most of the improvements are on the backend side.

With the release of iOS 4.2 GM earlier this week, we expect Apple to release iOS 4.2 to users sometime next week.

What improvements would like to see in Cydia for iOS 4.2? Please let us know in the comments section below.